Budget 2025 – For Love of the People
BLC Analysis of the Union Budget 2025
With the introduction of a new direct tax code on the horizon, sweeping changes to the income tax law were unlikely this year. As anticipated, the proposed changes while meaningful are modest in many respects, with the highlight being a revision of personal tax slabs—offering significant relief to middle-income earners.
The budget’s tax and non-tax proposals reflect the government’s strategic direction for the coming fiscal year. In light of global economic uncertainty, a prudent and balanced approach has been adopted. Key priorities include boosting foreign and domestic investment, increasing public expenditure, encouraging entrepreneurship, and driving urban consumption. Moreover, initiatives focusing on workforce upskilling and regulatory simplifications to improve the ease of doing business remain a central theme.
Reaffirming its commitment to tax reform, the government has announced that a draft of the new, streamlined income tax code will be presented to Parliament soon—a potentially crucial step towards simplification of income tax laws.
We are pleased to present our analysis of the Union Budget 2025, structured into three key sections:
- Current Economic Outlook
- Direct and Indirect Tax Proposals
- Regulatory and Legal Announcement